Bill Text: IL HB3423 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer or class 2 brewer to obtain a beer showcase permit. Makes conforming changes. Provides that a class 3 brewer licensee who meets certain criteria may obtain a self-distribution exemption to allow the sale of not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, to retail licensees and certain brewers. Provides that a class 2 brewer may transfer up to 139,500 gallons (instead of 31,000 gallons) of beer to a brew pub wholly owned and operated by the class 2 brewer. With regard to special event retailer's licenses and special use permit licenses, provides that those licenses shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form. Removes a provision requiring certain brewers to file a report of their water usage. Provides that any retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced) 2023-04-06 - Added Co-Sponsor Rep. Anne Stava-Murray [HB3423 Detail]

Download: Illinois-2023-HB3423-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3423 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
235 ILCS 5/1-3.43
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/6-40 new
235 ILCS 5/8-10.5
Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer or class 2 brewer to obtain a beer showcase permit. Makes conforming changes. Provides that a class 3 brewer licensee who meets certain criteria may obtain a self-distribution exemption to allow the sale of not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, to retail licensees and certain brewers. Provides that a class 2 brewer may transfer up to 139,500 gallons (instead of 31,000 gallons) of beer to a brew pub wholly owned and operated by the class 2 brewer. With regard to special event retailer's licenses and special use permit licenses, provides that those licenses shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form. Removes a provision requiring certain brewers to file a report of their water usage. Provides that any retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program.
LRB103 30931 RPS 57479 b
A BILL FOR
HB3423 LRB103 30931 RPS 57479 b
AN ACT concerning liquor.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Liquor Control Act of 1934 is amended by
changing Sections 1-3.43, 5-1, and 8-10.5 and by adding
Section 6-40 as follows:
(235 ILCS 5/1-3.43)
Sec. 1-3.43. Beer showcase permit license. "Beer showcase
permit" means a license for use by a class 1 brewer, class 2
brewer, class 3 brewer, or distributor to allow for the
transfer of beer only from an existing licensed premises of a
class 1 brewer, class 2 brewer, class 3 brewer, or distributor
to a designated site for a specific event.
(Source: P.A. 102-442, eff. 8-20-21; revised 2-28-22.)
(235 ILCS 5/5-1) (from Ch. 43, par. 115)
Sec. 5-1. Licenses issued by the Illinois Liquor Control
Commission shall be of the following classes:
(a) Manufacturer's license - Class 1. Distiller, Class 2.
Rectifier, Class 3. Brewer, Class 4. First Class Wine
Manufacturer, Class 5. Second Class Wine Manufacturer, Class
6. First Class Winemaker, Class 7. Second Class Winemaker,
Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,

HB3423 - 2 - LRB103 30931 RPS 57479 b
Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
Class 14. Class 3 Brewer,
(b) Distributor's license,
(c) Importing Distributor's license,
(d) Retailer's license,
(e) Special Event Retailer's license (not-for-profit),
(f) Railroad license,
(g) Boat license,
(h) Non-Beverage User's license,
(i) Wine-maker's premises license,
(j) Airplane license,
(k) Foreign importer's license,
(l) Broker's license,
(m) Non-resident dealer's license,
(n) Brew Pub license,
(o) Auction liquor license,
(p) Caterer retailer license,
(q) Special use permit license,
(r) Winery shipper's license,
(s) Craft distiller tasting permit,
(t) Brewer warehouse permit,
(u) Distilling pub license,
(v) Craft distiller warehouse permit,
(w) Beer showcase permit.
No person, firm, partnership, corporation, or other legal

HB3423 - 3 - LRB103 30931 RPS 57479 b
business entity that is engaged in the manufacturing of wine
may concurrently obtain and hold a wine-maker's license and a
wine manufacturer's license.
(a) A manufacturer's license shall allow the manufacture,
importation in bulk, storage, distribution and sale of
alcoholic liquor to persons without the State, as may be
permitted by law and to licensees in this State as follows:
Class 1. A Distiller may make sales and deliveries of
alcoholic liquor to distillers, rectifiers, importing
distributors, distributors and non-beverage users and to no
other licensees.
Class 2. A Rectifier, who is not a distiller, as defined
herein, may make sales and deliveries of alcoholic liquor to
rectifiers, importing distributors, distributors, retailers
and non-beverage users and to no other licensees.
Class 3. A Brewer may make sales and deliveries of beer to
importing distributors and distributors and may make sales as
authorized under subsection (e) of Section 6-4 of this Act,
including any alcoholic liquor that subsection (e) of Section
6-4 authorizes a brewer to sell in its original package only to
a non-licensee for pick-up by a non-licensee either within the
interior of the brewery premises or at outside of the brewery
premises at a curb-side or parking lot adjacent to the brewery
premises, subject to any local ordinance.
Class 4. A first class wine-manufacturer may make sales
and deliveries of up to 50,000 gallons of wine to

HB3423 - 4 - LRB103 30931 RPS 57479 b
manufacturers, importing distributors and distributors, and to
no other licensees. If a first-class wine-manufacturer
manufactures beer, it shall also obtain and shall only be
eligible for, in addition to any current license, a class 1
brewer license, shall not manufacture more than 930,000
gallons of beer per year, and shall not be a member of or
affiliated with, directly or indirectly, a manufacturer that
produces more than 930,000 gallons of beer per year. If the
first-class wine-manufacturer manufactures spirits, it shall
also obtain and shall only be eligible for, in addition to any
current license, a class 1 craft distiller license, shall not
manufacture more than 50,000 gallons of spirits per year, and
shall not be a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 50,000
gallons of spirits per year. A first-class wine-manufacturer
shall be permitted to sell wine manufactured at the
first-class wine-manufacturer premises to non-licensees.
Class 5. A second class Wine manufacturer may make sales
and deliveries of more than 50,000 gallons of wine to
manufacturers, importing distributors and distributors and to
no other licensees.
Class 6. A first-class wine-maker's license shall allow
the manufacture of up to 50,000 gallons of wine per year, and
the storage and sale of such wine to distributors in the State
and to persons without the State, as may be permitted by law. A
person who, prior to June 1, 2008 (the effective date of Public

HB3423 - 5 - LRB103 30931 RPS 57479 b
Act 95-634), is a holder of a first-class wine-maker's license
and annually produces more than 25,000 gallons of its own wine
and who distributes its wine to licensed retailers shall cease
this practice on or before July 1, 2008 in compliance with
Public Act 95-634. If a first-class wine-maker manufactures
beer, it shall also obtain and shall only be eligible for, in
addition to any current license, a class 1 brewer license,
shall not manufacture more than 930,000 gallons of beer per
year, and shall not be a member of or affiliated with, directly
or indirectly, a manufacturer that produces more than 930,000
gallons of beer per year. If the first-class wine-maker
manufactures spirits, it shall also obtain and shall only be
eligible for, in addition to any current license, a class 1
craft distiller license, shall not manufacture more than
50,000 gallons of spirits per year, and shall not be a member
of or affiliated with, directly or indirectly, a manufacturer
that produces more than 50,000 gallons of spirits per year. A
first-class wine-maker holding a class 1 brewer license or a
class 1 craft distiller license shall not be eligible for a
wine-maker's premises license but shall be permitted to sell
wine manufactured at the first-class wine-maker premises to
non-licensees.
Class 7. A second-class wine-maker's license shall allow
the manufacture of up to 150,000 gallons of wine per year, and
the storage and sale of such wine to distributors in this State
and to persons without the State, as may be permitted by law. A

HB3423 - 6 - LRB103 30931 RPS 57479 b
person who, prior to June 1, 2008 (the effective date of Public
Act 95-634), is a holder of a second-class wine-maker's
license and annually produces more than 25,000 gallons of its
own wine and who distributes its wine to licensed retailers
shall cease this practice on or before July 1, 2008 in
compliance with Public Act 95-634. If a second-class
wine-maker manufactures beer, it shall also obtain and shall
only be eligible for, in addition to any current license, a
class 2 brewer license, shall not manufacture more than
3,720,000 gallons of beer per year, and shall not be a member
of or affiliated with, directly or indirectly, a manufacturer
that produces more than 3,720,000 gallons of beer per year. If
a second-class wine-maker manufactures spirits, it shall also
obtain and shall only be eligible for, in addition to any
current license, a class 2 craft distiller license, shall not
manufacture more than 100,000 gallons of spirits per year, and
shall not be a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 100,000
gallons of spirits per year.
Class 8. A limited wine-manufacturer may make sales and
deliveries not to exceed 40,000 gallons of wine per year to
distributors, and to non-licensees in accordance with the
provisions of this Act.
Class 9. A craft distiller license, which may only be held
by a class 1 craft distiller licensee or class 2 craft
distiller licensee but not held by both a class 1 craft

HB3423 - 7 - LRB103 30931 RPS 57479 b
distiller licensee and a class 2 craft distiller licensee,
shall grant all rights conveyed by either: (i) a class 1 craft
distiller license if the craft distiller holds a class 1 craft
distiller license; or (ii) a class 2 craft distiller licensee
if the craft distiller holds a class 2 craft distiller
license.
Class 10. A class 1 craft distiller license, which may
only be issued to a licensed craft distiller or licensed
non-resident dealer, shall allow the manufacture of up to
50,000 gallons of spirits per year provided that the class 1
craft distiller licensee does not manufacture more than a
combined 50,000 gallons of spirits per year and is not a member
of or affiliated with, directly or indirectly, a manufacturer
that produces more than 50,000 gallons of spirits per year. If
a class 1 craft distiller manufactures beer, it shall also
obtain and shall only be eligible for, in addition to any
current license, a class 1 brewer license, shall not
manufacture more than 930,000 gallons of beer per year, and
shall not be a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 930,000
gallons of beer per year. If a class 1 craft distiller
manufactures wine, it shall also obtain and shall only be
eligible for, in addition to any current license, a
first-class wine-manufacturer license or a first-class
wine-maker's license, shall not manufacture more than 50,000
gallons of wine per year, and shall not be a member of or

HB3423 - 8 - LRB103 30931 RPS 57479 b
affiliated with, directly or indirectly, a manufacturer that
produces more than 50,000 gallons of wine per year. A class 1
craft distiller licensee may make sales and deliveries to
importing distributors and distributors and to retail
licensees in accordance with the conditions set forth in
paragraph (19) of subsection (a) of Section 3-12 of this Act.
However, the aggregate amount of spirits sold to non-licensees
and sold or delivered to retail licensees may not exceed 5,000
gallons per year.
A class 1 craft distiller licensee may sell up to 5,000
gallons of such spirits to non-licensees to the extent
permitted by any exemption approved by the State Commission
pursuant to Section 6-4 of this Act. A class 1 craft distiller
license holder may store such spirits at a non-contiguous
licensed location, but at no time shall a class 1 craft
distiller license holder directly or indirectly produce in the
aggregate more than 50,000 gallons of spirits per year.
A class 1 craft distiller licensee may hold more than one
class 1 craft distiller's license. However, a class 1 craft
distiller that holds more than one class 1 craft distiller
license shall not manufacture, in the aggregate, more than
50,000 gallons of spirits by distillation per year and shall
not sell, in the aggregate, more than 5,000 gallons of such
spirits to non-licensees in accordance with an exemption
approved by the State Commission pursuant to Section 6-4 of
this Act.

HB3423 - 9 - LRB103 30931 RPS 57479 b
Class 11. A class 2 craft distiller license, which may
only be issued to a licensed craft distiller or licensed
non-resident dealer, shall allow the manufacture of up to
100,000 gallons of spirits per year provided that the class 2
craft distiller licensee does not manufacture more than a
combined 100,000 gallons of spirits per year and is not a
member of or affiliated with, directly or indirectly, a
manufacturer that produces more than 100,000 gallons of
spirits per year. If a class 2 craft distiller manufactures
beer, it shall also obtain and shall only be eligible for, in
addition to any current license, a class 2 brewer license,
shall not manufacture more than 3,720,000 gallons of beer per
year, and shall not be a member of or affiliated with, directly
or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year. If a class 2 craft
distiller manufactures wine, it shall also obtain and shall
only be eligible for, in addition to any current license, a
second-class wine-maker's license, shall not manufacture more
than 150,000 gallons of wine per year, and shall not be a
member of or affiliated with, directly or indirectly, a
manufacturer that produces more than 150,000 gallons of wine
per year. A class 2 craft distiller licensee may make sales and
deliveries to importing distributors and distributors, but
shall not make sales or deliveries to any other licensee. If
the State Commission provides prior approval, a class 2 craft
distiller licensee may annually transfer up to 100,000 gallons

HB3423 - 10 - LRB103 30931 RPS 57479 b
of spirits manufactured by that class 2 craft distiller
licensee to the premises of a licensed class 2 craft distiller
wholly owned and operated by the same licensee. A class 2 craft
distiller may transfer spirits to a distilling pub wholly
owned and operated by the class 2 craft distiller subject to
the following limitations and restrictions: (i) the transfer
shall not annually exceed more than 5,000 gallons; (ii) the
annual amount transferred shall reduce the distilling pub's
annual permitted production limit; (iii) all spirits
transferred shall be subject to Article VIII of this Act; (iv)
a written record shall be maintained by the distiller and
distilling pub specifying the amount, date of delivery, and
receipt of the product by the distilling pub; and (v) the
distilling pub shall be located no farther than 80 miles from
the class 2 craft distiller's licensed location.
A class 2 craft distiller shall, prior to transferring
spirits to a distilling pub wholly owned by the class 2 craft
distiller, furnish a written notice to the State Commission of
intent to transfer spirits setting forth the name and address
of the distilling pub and shall annually submit to the State
Commission a verified report identifying the total gallons of
spirits transferred to the distilling pub wholly owned by the
class 2 craft distiller.
A class 2 craft distiller license holder may store such
spirits at a non-contiguous licensed location, but at no time
shall a class 2 craft distiller license holder directly or

HB3423 - 11 - LRB103 30931 RPS 57479 b
indirectly produce in the aggregate more than 100,000 gallons
of spirits per year.
Class 12. A class 1 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 930,000 gallons of beer
per year provided that the class 1 brewer licensee does not
manufacture more than a combined 930,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 930,000
gallons of beer per year. If a class 1 brewer manufactures
spirits, it shall also obtain and shall only be eligible for,
in addition to any current license, a class 1 craft distiller
license, shall not manufacture more than 50,000 gallons of
spirits per year, and shall not be a member of or affiliated
with, directly or indirectly, a manufacturer that produces
more than 50,000 gallons of spirits per year. If a class 1
craft brewer manufactures wine, it shall also obtain and shall
only be eligible for, in addition to any current license, a
first-class wine-manufacturer license or a first-class
wine-maker's license, shall not manufacture more than 50,000
gallons of wine per year, and shall not be a member of or
affiliated with, directly or indirectly, a manufacturer that
produces more than 50,000 gallons of wine per year. A class 1
brewer licensee may make sales and deliveries to importing
distributors and distributors and to retail licensees in
accordance with the conditions set forth in paragraph (18) of

HB3423 - 12 - LRB103 30931 RPS 57479 b
subsection (a) of Section 3-12 of this Act. If the State
Commission provides prior approval, a class 1 brewer may
annually transfer up to 930,000 gallons of beer manufactured
by that class 1 brewer to the premises of a licensed class 1
brewer wholly owned and operated by the same licensee.
Class 13. A class 2 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 3,720,000 gallons of beer
per year provided that the class 2 brewer licensee does not
manufacture more than a combined 3,720,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 3,720,000
gallons of beer per year. If a class 2 brewer manufactures
spirits, it shall also obtain and shall only be eligible for,
in addition to any current license, a class 2 craft distiller
license, shall not manufacture more than 100,000 gallons of
spirits per year, and shall not be a member of or affiliated
with, directly or indirectly, a manufacturer that produces
more than 100,000 gallons of spirits per year. If a class 2
craft distiller manufactures wine, it shall also obtain and
shall only be eligible for, in addition to any current
license, a second-class wine-maker's license, shall not
manufacture more than 150,000 gallons of wine per year, and
shall not be a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 150,000
gallons of wine a year. A class 2 brewer licensee may make

HB3423 - 13 - LRB103 30931 RPS 57479 b
sales and deliveries to importing distributors and
distributors, but shall not make sales or deliveries to any
other licensee. If the State Commission provides prior
approval, a class 2 brewer licensee may annually transfer up
to 3,720,000 gallons of beer manufactured by that class 2
brewer licensee to the premises of a licensed class 2 brewer
wholly owned and operated by the same licensee.
A class 2 brewer may transfer beer to a brew pub wholly
owned and operated by the class 2 brewer subject to the
following limitations and restrictions: (i) the transfer shall
not annually exceed more than 139,500 31,000 gallons; (ii) the
annual amount transferred shall reduce the brew pub's annual
permitted production limit; (iii) all beer transferred shall
be subject to Article VIII of this Act; (iv) a written record
shall be maintained by the brewer and brew pub specifying the
amount, date of delivery, and receipt of the product by the
brew pub; and (v) the brew pub shall be located no farther than
80 miles from the class 2 brewer's licensed location.
A class 2 brewer shall, prior to transferring beer to a
brew pub wholly owned by the class 2 brewer, furnish a written
notice to the State Commission of intent to transfer beer
setting forth the name and address of the brew pub and shall
annually submit to the State Commission a verified report
identifying the total gallons of beer transferred to the brew
pub wholly owned by the class 2 brewer.
Class 14. A class 3 brewer license, which may be issued to

HB3423 - 14 - LRB103 30931 RPS 57479 b
a brewer or a non-resident dealer, shall allow the manufacture
of no more than 465,000 gallons of beer per year and no more
than 155,000 gallons at a single brewery premises, and shall
allow the sale of no more than 77,500 6,200 gallons of beer
from each in-state or out-of-state class 3 brewery premises,
or 232,500 18,600 gallons in the aggregate, to retail
licensees, class 1 brewers, class 2 brewers, and class 3
brewers as long as the class 3 brewer licensee does not
manufacture more than a combined 465,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 465,000
gallons of beer per year to make sales to importing
distributors, distributors, retail licensees, brewers, class 1
brewers, class 2 brewers, and class 3 brewers in accordance
with the conditions set forth in paragraph (20) of subsection
(a) of Section 3-12. If the State Commission provides prior
approval, a class 3 brewer may annually transfer up to 155,000
gallons of beer manufactured by that class 3 brewer to the
premises of a licensed class 3 brewer wholly owned and
operated by the same licensee. A class 3 brewer shall
manufacture beer at the brewer's class 3 designated licensed
premises, and may sell beer as otherwise provided in this Act.
(a-1) A manufacturer which is licensed in this State to
make sales or deliveries of alcoholic liquor to licensed
distributors or importing distributors and which enlists
agents, representatives, or individuals acting on its behalf

HB3423 - 15 - LRB103 30931 RPS 57479 b
who contact licensed retailers on a regular and continual
basis in this State must register those agents,
representatives, or persons acting on its behalf with the
State Commission.
Registration of agents, representatives, or persons acting
on behalf of a manufacturer is fulfilled by submitting a form
to the Commission. The form shall be developed by the
Commission and shall include the name and address of the
applicant, the name and address of the manufacturer he or she
represents, the territory or areas assigned to sell to or
discuss pricing terms of alcoholic liquor, and any other
questions deemed appropriate and necessary. All statements in
the forms required to be made by law or by rule shall be deemed
material, and any person who knowingly misstates any material
fact under oath in an application is guilty of a Class B
misdemeanor. Fraud, misrepresentation, false statements,
misleading statements, evasions, or suppression of material
facts in the securing of a registration are grounds for
suspension or revocation of the registration. The State
Commission shall post a list of registered agents on the
Commission's website.
(b) A distributor's license shall allow (i) the wholesale
purchase and storage of alcoholic liquors and sale of
alcoholic liquors to licensees in this State and to persons
without the State, as may be permitted by law; (ii) the sale of
beer, cider, mead, or any combination thereof to brewers,

HB3423 - 16 - LRB103 30931 RPS 57479 b
class 1 brewers, and class 2 brewers that, pursuant to
subsection (e) of Section 6-4 of this Act, sell beer, cider,
mead, or any combination thereof to non-licensees at their
breweries; (iii) the sale of vermouth to class 1 craft
distillers and class 2 craft distillers that, pursuant to
subsection (e) of Section 6-4 of this Act, sell spirits,
vermouth, or both spirits and vermouth to non-licensees at
their distilleries; or (iv) as otherwise provided in this Act.
No person licensed as a distributor shall be granted a
non-resident dealer's license.
(c) An importing distributor's license may be issued to
and held by those only who are duly licensed distributors,
upon the filing of an application by a duly licensed
distributor, with the Commission and the Commission shall,
without the payment of any fee, immediately issue such
importing distributor's license to the applicant, which shall
allow the importation of alcoholic liquor by the licensee into
this State from any point in the United States outside this
State, and the purchase of alcoholic liquor in barrels, casks
or other bulk containers and the bottling of such alcoholic
liquors before resale thereof, but all bottles or containers
so filled shall be sealed, labeled, stamped and otherwise made
to comply with all provisions, rules and regulations governing
manufacturers in the preparation and bottling of alcoholic
liquors. The importing distributor's license shall permit such
licensee to purchase alcoholic liquor from Illinois licensed

HB3423 - 17 - LRB103 30931 RPS 57479 b
non-resident dealers and foreign importers only. No person
licensed as an importing distributor shall be granted a
non-resident dealer's license.
(d) A retailer's license shall allow the licensee to sell
and offer for sale at retail, only in the premises specified in
the license, alcoholic liquor for use or consumption, but not
for resale in any form. Except as provided in Section 6-16,
6-29, or 6-29.1, nothing in this Act shall deny, limit,
remove, or restrict the ability of a holder of a retailer's
license to transfer or ship alcoholic liquor to the purchaser
for use or consumption subject to any applicable local law or
ordinance. For the purposes of this Section, "shipping" means
the movement of alcoholic liquor from a licensed retailer to a
consumer via a common carrier. Except as provided in Section
6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
remove, or restrict the ability of a holder of a retailer's
license to deliver alcoholic liquor to the purchaser for use
or consumption. The delivery shall be made only within 12
hours from the time the alcoholic liquor leaves the licensed
premises of the retailer for delivery. For the purposes of
this Section, "delivery" means the movement of alcoholic
liquor purchased from a licensed retailer to a consumer
through the following methods:
(1) delivery within licensed retailer's parking lot,
including curbside, for pickup by the consumer;
(2) delivery by an owner, officer, director,

HB3423 - 18 - LRB103 30931 RPS 57479 b
shareholder, or employee of the licensed retailer; or
(3) delivery by a third-party contractor, independent
contractor, or agent with whom the licensed retailer has
contracted to make deliveries of alcoholic liquors.
Under subsection (1), (2), or (3), delivery shall not
include the use of common carriers.
Any retail license issued to a manufacturer shall only
permit the manufacturer to sell beer at retail on the premises
actually occupied by the manufacturer. For the purpose of
further describing the type of business conducted at a retail
licensed premises, a retailer's licensee may be designated by
the State Commission as (i) an on premise consumption
retailer, (ii) an off premise sale retailer, or (iii) a
combined on premise consumption and off premise sale retailer.
Except for a municipality with a population of more than
1,000,000 inhabitants, a home rule unit may not regulate the
delivery of alcoholic liquor inconsistent with this
subsection. This paragraph is a limitation under subsection
(i) of Section 6 of Article VII of the Illinois Constitution on
the concurrent exercise by home rule units of powers and
functions exercised by the State.
Notwithstanding any other provision of this subsection
(d), a retail licensee may sell alcoholic liquors to a special
event retailer licensee for resale to the extent permitted
under subsection (e).
(e) A special event retailer's license (not-for-profit)

HB3423 - 19 - LRB103 30931 RPS 57479 b
shall permit the licensee to purchase alcoholic liquors from
an Illinois licensed distributor (unless the licensee
purchases less than $500 of alcoholic liquors for the special
event, in which case the licensee may purchase the alcoholic
liquors from a licensed retailer) and shall allow the licensee
to sell and offer for sale, at retail, alcoholic liquors for
consumption on or off the premises specified in the license
use or consumption, but not for resale in any form and only at
the location and on the specific dates designated for the
special event in the license. An applicant for a special event
retailer license must (i) furnish with the application: (A) a
resale number issued under Section 2c of the Retailers'
Occupation Tax Act or evidence that the applicant is
registered under Section 2a of the Retailers' Occupation Tax
Act, (B) a current, valid exemption identification number
issued under Section 1g of the Retailers' Occupation Tax Act,
and a certification to the Commission that the purchase of
alcoholic liquors will be a tax-exempt purchase, or (C) a
statement that the applicant is not registered under Section
2a of the Retailers' Occupation Tax Act, does not hold a resale
number under Section 2c of the Retailers' Occupation Tax Act,
and does not hold an exemption number under Section 1g of the
Retailers' Occupation Tax Act, in which event the Commission
shall set forth on the special event retailer's license a
statement to that effect; (ii) submit with the application
proof satisfactory to the State Commission that the applicant

HB3423 - 20 - LRB103 30931 RPS 57479 b
will provide dram shop liability insurance in the maximum
limits; and (iii) show proof satisfactory to the State
Commission that the applicant has obtained local authority
approval.
Nothing in this Act prohibits an Illinois licensed
distributor from offering credit or a refund for unused,
salable alcoholic liquors to a holder of a special event
retailer's license or the special event retailer's licensee
from accepting the credit or refund of alcoholic liquors at
the conclusion of the event specified in the license.
(f) A railroad license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic
liquors directly from manufacturers, foreign importers,
distributors and importing distributors from within or outside
this State; and to store such alcoholic liquors in this State;
provided that the above powers may be exercised only in
connection with the importation, purchase or storage of
alcoholic liquors to be sold or dispensed on a club, buffet,
lounge or dining car operated on an electric, gas or steam
railway in this State; and provided further, that railroad
licensees exercising the above powers shall be subject to all
provisions of Article VIII of this Act as applied to importing
distributors. A railroad license shall also permit the
licensee to sell or dispense alcoholic liquors on any club,

HB3423 - 21 - LRB103 30931 RPS 57479 b
buffet, lounge or dining car operated on an electric, gas or
steam railway regularly operated by a common carrier in this
State, but shall not permit the sale for resale of any
alcoholic liquors to any licensee within this State. A license
shall be obtained for each car in which such sales are made.
(g) A boat license shall allow the sale of alcoholic
liquor in individual drinks, on any passenger boat regularly
operated as a common carrier on navigable waters in this State
or on any riverboat operated under the Illinois Gambling Act,
which boat or riverboat maintains a public dining room or
restaurant thereon.
(h) A non-beverage user's license shall allow the licensee
to purchase alcoholic liquor from a licensed manufacturer or
importing distributor, without the imposition of any tax upon
the business of such licensed manufacturer or importing
distributor as to such alcoholic liquor to be used by such
licensee solely for the non-beverage purposes set forth in
subsection (a) of Section 8-1 of this Act, and such licenses
shall be divided and classified and shall permit the purchase,
possession and use of limited and stated quantities of
alcoholic liquor as follows:
Class 1, not to exceed ......................... 500 gallons
Class 2, not to exceed ....................... 1,000 gallons
Class 3, not to exceed ....................... 5,000 gallons
Class 4, not to exceed ...................... 10,000 gallons
Class 5, not to exceed ....................... 50,000 gallons

HB3423 - 22 - LRB103 30931 RPS 57479 b
(i) A wine-maker's premises license shall allow a licensee
that concurrently holds a first-class wine-maker's license to
sell and offer for sale at retail in the premises specified in
such license not more than 50,000 gallons of the first-class
wine-maker's wine that is made at the first-class wine-maker's
licensed premises per year for use or consumption, but not for
resale in any form. A wine-maker's premises license shall
allow a licensee who concurrently holds a second-class
wine-maker's license to sell and offer for sale at retail in
the premises specified in such license up to 100,000 gallons
of the second-class wine-maker's wine that is made at the
second-class wine-maker's licensed premises per year for use
or consumption but not for resale in any form. A first-class
wine-maker that concurrently holds a class 1 brewer license or
a class 1 craft distiller license shall not be eligible to hold
a wine-maker's premises license. A wine-maker's premises
license shall allow a licensee that concurrently holds a
first-class wine-maker's license or a second-class
wine-maker's license to sell and offer for sale at retail at
the premises specified in the wine-maker's premises license,
for use or consumption but not for resale in any form, any
beer, wine, and spirits purchased from a licensed distributor.
Upon approval from the State Commission, a wine-maker's
premises license shall allow the licensee to sell and offer
for sale at (i) the wine-maker's licensed premises and (ii) at
up to 2 additional locations for use and consumption and not

HB3423 - 23 - LRB103 30931 RPS 57479 b
for resale. Each location shall require additional licensing
per location as specified in Section 5-3 of this Act. A
wine-maker's premises licensee shall secure liquor liability
insurance coverage in an amount at least equal to the maximum
liability amounts set forth in subsection (a) of Section 6-21
of this Act.
(j) An airplane license shall permit the licensee to
import alcoholic liquors into this State from any point in the
United States outside this State and to store such alcoholic
liquors in this State; to make wholesale purchases of
alcoholic liquors directly from manufacturers, foreign
importers, distributors and importing distributors from within
or outside this State; and to store such alcoholic liquors in
this State; provided that the above powers may be exercised
only in connection with the importation, purchase or storage
of alcoholic liquors to be sold or dispensed on an airplane;
and provided further, that airplane licensees exercising the
above powers shall be subject to all provisions of Article
VIII of this Act as applied to importing distributors. An
airplane licensee shall also permit the sale or dispensing of
alcoholic liquors on any passenger airplane regularly operated
by a common carrier in this State, but shall not permit the
sale for resale of any alcoholic liquors to any licensee
within this State. A single airplane license shall be required
of an airline company if liquor service is provided on board
aircraft in this State. The annual fee for such license shall

HB3423 - 24 - LRB103 30931 RPS 57479 b
be as determined in Section 5-3.
(k) A foreign importer's license shall permit such
licensee to purchase alcoholic liquor from Illinois licensed
non-resident dealers only, and to import alcoholic liquor
other than in bulk from any point outside the United States and
to sell such alcoholic liquor to Illinois licensed importing
distributors and to no one else in Illinois; provided that (i)
the foreign importer registers with the State Commission every
brand of alcoholic liquor that it proposes to sell to Illinois
licensees during the license period, (ii) the foreign importer
complies with all of the provisions of Section 6-9 of this Act
with respect to registration of such Illinois licensees as may
be granted the right to sell such brands at wholesale, and
(iii) the foreign importer complies with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers.
(l) (i) A broker's license shall be required of all
persons who solicit orders for, offer to sell or offer to
supply alcoholic liquor to retailers in the State of Illinois,
or who offer to retailers to ship or cause to be shipped or to
make contact with distillers, craft distillers, rectifiers,
brewers or manufacturers or any other party within or without
the State of Illinois in order that alcoholic liquors be
shipped to a distributor, importing distributor or foreign
importer, whether such solicitation or offer is consummated
within or without the State of Illinois.

HB3423 - 25 - LRB103 30931 RPS 57479 b
No holder of a retailer's license issued by the Illinois
Liquor Control Commission shall purchase or receive any
alcoholic liquor, the order for which was solicited or offered
for sale to such retailer by a broker unless the broker is the
holder of a valid broker's license.
The broker shall, upon the acceptance by a retailer of the
broker's solicitation of an order or offer to sell or supply or
deliver or have delivered alcoholic liquors, promptly forward
to the Illinois Liquor Control Commission a notification of
said transaction in such form as the Commission may by
regulations prescribe.
(ii) A broker's license shall be required of a person
within this State, other than a retail licensee, who, for a fee
or commission, promotes, solicits, or accepts orders for
alcoholic liquor, for use or consumption and not for resale,
to be shipped from this State and delivered to residents
outside of this State by an express company, common carrier,
or contract carrier. This Section does not apply to any person
who promotes, solicits, or accepts orders for wine as
specifically authorized in Section 6-29 of this Act.
A broker's license under this subsection (l) shall not
entitle the holder to buy or sell any alcoholic liquors for his
own account or to take or deliver title to such alcoholic
liquors.
This subsection (l) shall not apply to distributors,
employees of distributors, or employees of a manufacturer who

HB3423 - 26 - LRB103 30931 RPS 57479 b
has registered the trademark, brand or name of the alcoholic
liquor pursuant to Section 6-9 of this Act, and who regularly
sells such alcoholic liquor in the State of Illinois only to
its registrants thereunder.
Any agent, representative, or person subject to
registration pursuant to subsection (a-1) of this Section
shall not be eligible to receive a broker's license.
(m) A non-resident dealer's license shall permit such
licensee to ship into and warehouse alcoholic liquor into this
State from any point outside of this State, and to sell such
alcoholic liquor to Illinois licensed foreign importers and
importing distributors and to no one else in this State;
provided that (i) said non-resident dealer shall register with
the Illinois Liquor Control Commission each and every brand of
alcoholic liquor which it proposes to sell to Illinois
licensees during the license period, (ii) it shall comply with
all of the provisions of Section 6-9 hereof with respect to
registration of such Illinois licensees as may be granted the
right to sell such brands at wholesale by duly filing such
registration statement, thereby authorizing the non-resident
dealer to proceed to sell such brands at wholesale, and (iii)
the non-resident dealer shall comply with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers. No person licensed as a
non-resident dealer shall be granted a distributor's or
importing distributor's license.

HB3423 - 27 - LRB103 30931 RPS 57479 b
(n) A brew pub license shall allow the licensee to only (i)
manufacture up to 155,000 gallons of beer per year only on the
premises specified in the license, (ii) make sales of the beer
manufactured on the premises or, with the approval of the
Commission, beer manufactured on another brew pub licensed
premises that is wholly owned and operated by the same
licensee to importing distributors, distributors, and to
non-licensees for use and consumption, (iii) store the beer
upon the premises, (iv) sell and offer for sale at retail from
the licensed premises for off-premises consumption no more
than 155,000 gallons per year so long as such sales are only
made in-person, (v) sell and offer for sale at retail for use
and consumption on the premises specified in the license any
form of alcoholic liquor purchased from a licensed distributor
or importing distributor, (vi) with the prior approval of the
Commission, annually transfer no more than 155,000 gallons of
beer manufactured on the premises to a licensed brew pub
wholly owned and operated by the same licensee, and (vii)
notwithstanding item (i) of this subsection, brew pubs wholly
owned and operated by the same licensee may combine each
location's production limit of 155,000 gallons of beer per
year and allocate the aggregate total between the wholly
owned, operated, and licensed locations.
A brew pub licensee shall not under any circumstance sell
or offer for sale beer manufactured by the brew pub licensee to
retail licensees.

HB3423 - 28 - LRB103 30931 RPS 57479 b
A person who holds a class 2 brewer license may
simultaneously hold a brew pub license if the class 2 brewer
(i) does not, under any circumstance, sell or offer for sale
beer manufactured by the class 2 brewer to retail licensees;
(ii) does not hold more than 3 brew pub licenses in this State;
(iii) does not manufacture more than a combined 3,720,000
gallons of beer per year, including the beer manufactured at
the brew pub; and (iv) is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or any other alcoholic
liquor.
Notwithstanding any other provision of this Act, a
licensed brewer, class 2 brewer, or non-resident dealer who
before July 1, 2015 manufactured less than 3,720,000 gallons
of beer per year and held a brew pub license on or before July
1, 2015 may (i) continue to qualify for and hold that brew pub
license for the licensed premises and (ii) manufacture more
than 3,720,000 gallons of beer per year and continue to
qualify for and hold that brew pub license if that brewer,
class 2 brewer, or non-resident dealer does not simultaneously
hold a class 1 brewer license and is not a member of or
affiliated with, directly or indirectly, a manufacturer that
produces more than 3,720,000 gallons of beer per year or that
produces any other alcoholic liquor.
A brew pub licensee may apply for a class 3 brewer license
and, upon: (i) meeting all applicable qualifications of this

HB3423 - 29 - LRB103 30931 RPS 57479 b
Act, and relinquishing all commonly owned brew pub or retail
licenses, shall be issued a class 3 brewer license. Nothing in
this Act shall prohibit the issuance of a class 3 brewer
license if the applicant:
(1) has a valid retail license on or before May 1,
2021;
(2) has an ownership interest in at least two brew
pubs licenses on or before May 1, 2021;
(3) the brew pub licensee applies for a class 3 brewer
license on or before October 1, 2022 and relinquishes all
commonly owned brew pub licenses; and
(4) relinquishes all commonly owned retail licenses on
or before December 31, 2022.
If a brew pub licensee is issued a class 3 brewer license,
the class 3 brewer license shall expire on the same date as the
existing brew pub license and the State Commission shall not
require a class 3 brewer licensee to obtain a brewer license,
or in the alternative to pay a fee for a brewer license, until
the date the brew pub license of the applicant would have
expired.
(o) A caterer retailer license shall allow the holder to
serve alcoholic liquors as an incidental part of a food
service that serves prepared meals which excludes the serving
of snacks as the primary meal, either on or off-site whether
licensed or unlicensed. A caterer retailer license shall allow
the holder, a distributor, or an importing distributor to

HB3423 - 30 - LRB103 30931 RPS 57479 b
transfer any inventory to and from the holder's retail
premises and shall allow the holder to purchase alcoholic
liquor from a distributor or importing distributor to be
delivered directly to an off-site event.
Nothing in this Act prohibits a distributor or importing
distributor from offering credit or a refund for unused,
salable beer to a holder of a caterer retailer license or a
caterer retailer licensee from accepting a credit or refund
for unused, salable beer, in the event an act of God is the
sole reason an off-site event is cancelled and if: (i) the
holder of a caterer retailer license has not transferred
alcoholic liquor from its caterer retailer premises to an
off-site location; (ii) the distributor or importing
distributor offers the credit or refund for the unused,
salable beer that it delivered to the off-site premises and
not for any unused, salable beer that the distributor or
importing distributor delivered to the caterer retailer's
premises; and (iii) the unused, salable beer would likely
spoil if transferred to the caterer retailer's premises. A
caterer retailer license shall allow the holder to transfer
any inventory from any off-site location to its caterer
retailer premises at the conclusion of an off-site event or
engage a distributor or importing distributor to transfer any
inventory from any off-site location to its caterer retailer
premises at the conclusion of an off-site event, provided that
the distributor or importing distributor issues bona fide

HB3423 - 31 - LRB103 30931 RPS 57479 b
charges to the caterer retailer licensee for fuel, labor, and
delivery and the distributor or importing distributor collects
payment from the caterer retailer licensee prior to the
distributor or importing distributor transferring inventory to
the caterer retailer premises.
For purposes of this subsection (o), an "act of God" means
an unforeseeable event, such as a rain or snow storm, hail, a
flood, or a similar event, that is the sole cause of the
cancellation of an off-site, outdoor event.
(p) An auction liquor license shall allow the licensee to
sell and offer for sale at auction wine and spirits for use or
consumption, or for resale by an Illinois liquor licensee in
accordance with provisions of this Act. An auction liquor
license will be issued to a person and it will permit the
auction liquor licensee to hold the auction anywhere in the
State. An auction liquor license must be obtained for each
auction at least 14 days in advance of the auction date.
(q) A special use permit license shall allow an Illinois
licensed retailer to transfer a portion of its alcoholic
liquor inventory from its retail licensed premises to the
premises specified in the license hereby created; to purchase
alcoholic liquor from a distributor or importing distributor
to be delivered directly to the location specified in the
license hereby created; and to sell or offer for sale at
retail, only in the premises specified in the license hereby
created, the transferred or delivered alcoholic liquor for

HB3423 - 32 - LRB103 30931 RPS 57479 b
consumption on or off the premises specified in the license
use or consumption, but not for resale in any form. A special
use permit license may be granted for the following time
periods: one day or less; 2 or more days to a maximum of 15
days per location in any 12-month period. An applicant for the
special use permit license must also submit with the
application proof satisfactory to the State Commission that
the applicant will provide dram shop liability insurance to
the maximum limits and have local authority approval.
A special use permit license shall allow the holder to
transfer any inventory from the holder's special use premises
to its retail premises at the conclusion of the special use
event or engage a distributor or importing distributor to
transfer any inventory from the holder's special use premises
to its retail premises at the conclusion of an off-site event,
provided that the distributor or importing distributor issues
bona fide charges to the special use permit licensee for fuel,
labor, and delivery and the distributor or importing
distributor collects payment from the retail licensee prior to
the distributor or importing distributor transferring
inventory to the retail premises.
Nothing in this Act prohibits a distributor or importing
distributor from offering credit or a refund for unused,
salable beer to a special use permit licensee or a special use
permit licensee from accepting a credit or refund for unused,
salable beer at the conclusion of the event specified in the

HB3423 - 33 - LRB103 30931 RPS 57479 b
license if: (i) the holder of the special use permit license
has not transferred alcoholic liquor from its retail licensed
premises to the premises specified in the special use permit
license; (ii) the distributor or importing distributor offers
the credit or refund for the unused, salable beer that it
delivered to the premises specified in the special use permit
license and not for any unused, salable beer that the
distributor or importing distributor delivered to the
retailer's premises; and (iii) the unused, salable beer would
likely spoil if transferred to the retailer premises.
(r) A winery shipper's license shall allow a person with a
first-class or second-class wine manufacturer's license, a
first-class or second-class wine-maker's license, or a limited
wine manufacturer's license or who is licensed to make wine
under the laws of another state to ship wine made by that
licensee directly to a resident of this State who is 21 years
of age or older for that resident's personal use and not for
resale. Prior to receiving a winery shipper's license, an
applicant for the license must provide the Commission with a
true copy of its current license in any state in which it is
licensed as a manufacturer of wine. An applicant for a winery
shipper's license must also complete an application form that
provides any other information the Commission deems necessary.
The application form shall include all addresses from which
the applicant for a winery shipper's license intends to ship
wine, including the name and address of any third party,

HB3423 - 34 - LRB103 30931 RPS 57479 b
except for a common carrier, authorized to ship wine on behalf
of the manufacturer. The application form shall include an
acknowledgement consenting to the jurisdiction of the
Commission, the Illinois Department of Revenue, and the courts
of this State concerning the enforcement of this Act and any
related laws, rules, and regulations, including authorizing
the Department of Revenue and the Commission to conduct audits
for the purpose of ensuring compliance with Public Act 95-634,
and an acknowledgement that the wine manufacturer is in
compliance with Section 6-2 of this Act. Any third party,
except for a common carrier, authorized to ship wine on behalf
of a first-class or second-class wine manufacturer's licensee,
a first-class or second-class wine-maker's licensee, a limited
wine manufacturer's licensee, or a person who is licensed to
make wine under the laws of another state shall also be
disclosed by the winery shipper's licensee, and a copy of the
written appointment of the third-party wine provider, except
for a common carrier, to the wine manufacturer shall be filed
with the State Commission as a supplement to the winery
shipper's license application or any renewal thereof. The
winery shipper's license holder shall affirm under penalty of
perjury, as part of the winery shipper's license application
or renewal, that he or she only ships wine, either directly or
indirectly through a third-party provider, from the licensee's
own production.
Except for a common carrier, a third-party provider

HB3423 - 35 - LRB103 30931 RPS 57479 b
shipping wine on behalf of a winery shipper's license holder
is the agent of the winery shipper's license holder and, as
such, a winery shipper's license holder is responsible for the
acts and omissions of the third-party provider acting on
behalf of the license holder. A third-party provider, except
for a common carrier, that engages in shipping wine into
Illinois on behalf of a winery shipper's license holder shall
consent to the jurisdiction of the State Commission and the
State. Any third-party, except for a common carrier, holding
such an appointment shall, by February 1 of each calendar year
and upon request by the State Commission or the Department of
Revenue, file with the State Commission a statement detailing
each shipment made to an Illinois resident. The statement
shall include the name and address of the third-party provider
filing the statement, the time period covered by the
statement, and the following information:
(1) the name, address, and license number of the
winery shipper on whose behalf the shipment was made;
(2) the quantity of the products delivered; and
(3) the date and address of the shipment.
If the Department of Revenue or the State Commission requests
a statement under this paragraph, the third-party provider
must provide that statement no later than 30 days after the
request is made. Any books, records, supporting papers, and
documents containing information and data relating to a
statement under this paragraph shall be kept and preserved for

HB3423 - 36 - LRB103 30931 RPS 57479 b
a period of 3 years, unless their destruction sooner is
authorized, in writing, by the Director of Revenue, and shall
be open and available to inspection by the Director of Revenue
or the State Commission or any duly authorized officer, agent,
or employee of the State Commission or the Department of
Revenue, at all times during business hours of the day. Any
person who violates any provision of this paragraph or any
rule of the State Commission for the administration and
enforcement of the provisions of this paragraph is guilty of a
Class C misdemeanor. In case of a continuing violation, each
day's continuance thereof shall be a separate and distinct
offense.
The State Commission shall adopt rules as soon as
practicable to implement the requirements of Public Act 99-904
and shall adopt rules prohibiting any such third-party
appointment of a third-party provider, except for a common
carrier, that has been deemed by the State Commission to have
violated the provisions of this Act with regard to any winery
shipper licensee.
A winery shipper licensee must pay to the Department of
Revenue the State liquor gallonage tax under Section 8-1 for
all wine that is sold by the licensee and shipped to a person
in this State. For the purposes of Section 8-1, a winery
shipper licensee shall be taxed in the same manner as a
manufacturer of wine. A licensee who is not otherwise required
to register under the Retailers' Occupation Tax Act must

HB3423 - 37 - LRB103 30931 RPS 57479 b
register under the Use Tax Act to collect and remit use tax to
the Department of Revenue for all gallons of wine that are sold
by the licensee and shipped to persons in this State. If a
licensee fails to remit the tax imposed under this Act in
accordance with the provisions of Article VIII of this Act,
the winery shipper's license shall be revoked in accordance
with the provisions of Article VII of this Act. If a licensee
fails to properly register and remit tax under the Use Tax Act
or the Retailers' Occupation Tax Act for all wine that is sold
by the winery shipper and shipped to persons in this State, the
winery shipper's license shall be revoked in accordance with
the provisions of Article VII of this Act.
A winery shipper licensee must collect, maintain, and
submit to the Commission on a semi-annual basis the total
number of cases per resident of wine shipped to residents of
this State. A winery shipper licensed under this subsection
(r) must comply with the requirements of Section 6-29 of this
Act.
Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
Section 3-12, the State Commission may receive, respond to,
and investigate any complaint and impose any of the remedies
specified in paragraph (1) of subsection (a) of Section 3-12.
As used in this subsection, "third-party provider" means
any entity that provides fulfillment house services, including
warehousing, packaging, distribution, order processing, or
shipment of wine, but not the sale of wine, on behalf of a

HB3423 - 38 - LRB103 30931 RPS 57479 b
licensed winery shipper.
(s) A craft distiller tasting permit license shall allow
an Illinois licensed class 1 craft distiller or class 2 craft
distiller to transfer a portion of its alcoholic liquor
inventory from its class 1 craft distiller or class 2 craft
distiller licensed premises to the premises specified in the
license hereby created and to conduct a sampling, only in the
premises specified in the license hereby created, of the
transferred alcoholic liquor in accordance with subsection (c)
of Section 6-31 of this Act. The transferred alcoholic liquor
may not be sold or resold in any form. An applicant for the
craft distiller tasting permit license must also submit with
the application proof satisfactory to the State Commission
that the applicant will provide dram shop liability insurance
to the maximum limits and have local authority approval.
(t) A brewer warehouse permit may be issued to the holder
of a class 1 brewer license or a class 2 brewer license. If the
holder of the permit is a class 1 brewer licensee, the brewer
warehouse permit shall allow the holder to store or warehouse
up to 930,000 gallons of tax-determined beer manufactured by
the holder of the permit at the premises specified on the
permit. If the holder of the permit is a class 2 brewer
licensee, the brewer warehouse permit shall allow the holder
to store or warehouse up to 3,720,000 gallons of
tax-determined beer manufactured by the holder of the permit
at the premises specified on the permit. Sales to

HB3423 - 39 - LRB103 30931 RPS 57479 b
non-licensees are prohibited at the premises specified in the
brewer warehouse permit.
(u) A distilling pub license shall allow the licensee to
only (i) manufacture up to 5,000 gallons of spirits per year
only on the premises specified in the license, (ii) make sales
of the spirits manufactured on the premises or, with the
approval of the State Commission, spirits manufactured on
another distilling pub licensed premises that is wholly owned
and operated by the same licensee to importing distributors
and distributors and to non-licensees for use and consumption,
(iii) store the spirits upon the premises, (iv) sell and offer
for sale at retail from the licensed premises for off-premises
consumption no more than 5,000 gallons per year so long as such
sales are only made in-person, (v) sell and offer for sale at
retail for use and consumption on the premises specified in
the license any form of alcoholic liquor purchased from a
licensed distributor or importing distributor, and (vi) with
the prior approval of the State Commission, annually transfer
no more than 5,000 gallons of spirits manufactured on the
premises to a licensed distilling pub wholly owned and
operated by the same licensee.
A distilling pub licensee shall not under any circumstance
sell or offer for sale spirits manufactured by the distilling
pub licensee to retail licensees.
A person who holds a class 2 craft distiller license may
simultaneously hold a distilling pub license if the class 2

HB3423 - 40 - LRB103 30931 RPS 57479 b
craft distiller (i) does not, under any circumstance, sell or
offer for sale spirits manufactured by the class 2 craft
distiller to retail licensees; (ii) does not hold more than 3
distilling pub licenses in this State; (iii) does not
manufacture more than a combined 100,000 gallons of spirits
per year, including the spirits manufactured at the distilling
pub; and (iv) is not a member of or affiliated with, directly
or indirectly, a manufacturer that produces more than 100,000
gallons of spirits per year or any other alcoholic liquor.
(v) A craft distiller warehouse permit may be issued to
the holder of a class 1 craft distiller or class 2 craft
distiller license. The craft distiller warehouse permit shall
allow the holder to store or warehouse up to 500,000 gallons of
spirits manufactured by the holder of the permit at the
premises specified on the permit. Sales to non-licensees are
prohibited at the premises specified in the craft distiller
warehouse permit.
(w) A beer showcase permit license shall allow an
Illinois-licensed distributor or beer manufacturer with retail
privileges to transfer a portion of its beer inventory from
its licensed premises to the premises specified in the beer
showcase permit license, and, in the case of a class 1 brewer,
class 2 brewer, or class 3 brewer, transfer only beer the class
1 brewer, class 2 brewer, or class 3 brewer manufactures from
its licensed premises to the premises specified in the beer
showcase permit license; and to sell or offer for sale at

HB3423 - 41 - LRB103 30931 RPS 57479 b
retail, only in the premises specified in the beer showcase
permit license, the transferred or delivered beer for on or
off premise consumption, but not for resale in any form and to
sell to non-licensees not more than 96 fluid ounces of beer per
person. A beer showcase permit license may be granted for the
following time periods: one day or less; or 2 or more days to a
maximum of 15 days per location in any 12-month period. An
applicant for a beer showcase permit license must also submit
with the application proof satisfactory to the State
Commission that the applicant will provide dram shop liability
insurance to the maximum limits and have local authority
approval. The State Commission shall require the beer showcase
applicant to comply with Section 6-27.1.
(Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;
101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.
8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;
102-442, eff. 8-20-21; revised 2-28-22.)
(235 ILCS 5/6-40 new)
Sec. 6-40. Consumer loyalty and reward programs.
(a) In this Section, "consumer loyalty and reward program"
means any program offered to consumers by a licensed retailer
or manufacturer with retail privileges designed to allow a
consumer to access rewards for purchases made at the retailer
or manufacturer with retail privileges. "Consumer loyalty and
reward program" includes, but is not limited to, point

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accumulation programs, memberships in retailer clubs or
organizations, email lists or other forms of registration by a
consumer in a retailer program, or mug clubs.
(b) Any retail licensee or licensed manufacturer with
retail privileges may offer incentives to consumers for
participation in a consumer loyalty and reward program.
(c) Any retail licensee or licensed manufacturer with
retail privileges may, as part of a consumer loyalty and
reward program, offer consumers discounts on its products.
(d) Any retail licensee or licensed manufacturer with
retail privileges may offer benefits to the members or
participants of a consumer loyalty and reward program that are
not offered to other consumers.
(e) Any retail licensee or licensed manufacturer with
retail privileges may offer specialty glassware for sale to
members or participants in a consumer loyalty and reward
program and offer a price discount to the owner of that
glassware for additional purchases using the glassware.
(235 ILCS 5/8-10.5)
Sec. 8-10.5. Beer production quantity reporting.
(a) As used in this Section:
"Directly" means that a licensed distributor was not used
in the transaction.
"Final packaging container" means the last vessel in which
beer is held before (i) consumption by an individual on the

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brewer's licensed premises; (ii) being placed in a keg,
bottle, or can for consumption by an individual; or (iii)
being removed for additional fermentation and aging in a cask
or barrel.
(b) A brewer who is a class 1 brewer, class 2 brewer, class
3 brewer, or brew pub licensee shall accurately measure the
quantity of beer transferred into its final packaging
container to determine the brewer's tax liability by
converting beer production into the amount of beer sold and to
ensure compliance with any production or self-distribution
quantity limitations under this Act applicable to the class 1
brewer, class 2 brewer, class 3 brewer, or brew pub. The
measurement shall comply with 27 CFR 25.41 and 27 CFR 25.42.
Any brewer subject to this Section shall file, on the same date
as the brewer files similar reports with the U.S. Department
of the Treasury's Tobacco and Alcohol Tax and Trade Bureau,
with the Department and State Commission a report of their use
of water along with their "Brewer's Report of Operations"
filed with the U.S. Department of Treasury's Alcohol and
Tobacco Tax and Trade Bureau and shall maintain and produce
for examination and inspection by the Department and the State
Commission utility bills for water for 3 years along with
their "Brewer's Report of Operations" filed with the U.S.
Department of Treasury's Alcohol and Tobacco Tax and Trade
Bureau. The Department, in cooperation with the State
Commission, may audit on an annual basis the amount a class 1

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brewer, class 2 brewer, class 3 brewer, or brew pub licensee
produces to determine compliance with this Act.
(c) A brewer's failure to comply with this Section shall
result in the State Commission issuing a fine or suspending or
revoking the brewer's license.
(Source: P.A. 102-442, eff. 8-20-21.)